Next-Generation Distribution Planning: How Do We Capture the Value of Distributed Energy Resources?

Many studies suggest that distributed energy resources (DERs) have significant value for the distribution system by providing an alternative to conventional system upgrades. Solar photovoltaic (PV) resources can help reduce the flow on lines and substations, and battery storage can help support the capacity to serve load behind a constrained substation transformer. Distributed batteries and smart-inverter-equipped solar can help stabilize the voltage. Taken together, this means investments in conventional solutions for the distribution system, such as upgrades to and the replacement of substations, secondary transformers, and capacitor banks, may be deferred and, in some cases, eliminated.